external audit

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External Audit

A measurement and report on the state of a person's or business' finances, made by an external agency. A common (and feared) example of an external audit is an audit by the IRS, which is done to ensure that the person or business being audited has paid the appropriate amount in taxes. Often, companies hire audit firms to look at their financial states and to receive an objective assessment. It is also called an outside audit. See also: Internal audit, Audit.

external audit

An examination of a company's records and reports by an outside party. Also called independent audit, outside audit. Compare internal audit.
References in periodicals archive ?
Securities and Exchange Commission (SEC) and mandated independent audits.
Controlled companies (one in which an individual, a group or another company hold more than 50% of the voting power) would have to have a completely independent audit committee but would be exempt from the requirement that a board must have a majority of independent directors.
Oversight of the internal and independent audit functions (27%).
The SECPS should strengthen the peer review process, including requiring annual reviews of the largest firms, which perform most independent audits.
The fully transparent process begins with a Code of Business Practices, factory Audit Checklist and Guidance Document and runs straight through to the annual certification/recertification, via independent audits.
Standardized, independent audits are the only way to gain confidence in the data provided.
The majority of those credit unions already have independent audits done by a licensed public accountant or a CPA, he added.
industry, CEMA has pushed hard to make standardized independent audits the de facto standard audience verification process in the technology trade show industry.
The report, The Accounting Profession--Major Issues: Progress and Concerns, lauded the actions taken by the profession from 1972 through 1995 to improve accounting and auditing standards and the performance of independent audits, but it stressed the need for continued action to ensure the profession upholds public confidence in the fairness of financial reporting.
The ISO framework calls for independent audits and for re-certification every three years.
For new applicants, the amendment includes language from a 1992 policy statement that requires applicants for deposit insurance coverage to have annual independent audits for at least five years after the FDIC grants insurance coverage.
The ISO framework calls for annual independent audits and for re-certification every three years.

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